Samsung Reportedly Locks in ~70% of Memory Chip Capacity Until 2031, HBM Long-Term Contract Price Only One-Fifth of Spot
Summary
According to Korean media, Samsung has locked in about 70% of its memory capacity through long-term supply agreements to meet contracts extending to 2031, with customers including Microsoft, Nvidia, and Google. HBM spot prices can be up to five times the long-term contract price; for example, a 36GB HBM3E module costs about 2.87 million KRW on the spot market but only 500,000 to 700,000 KRW under contract. As the transition to HBM4 tightens DRAM supply, Samsung and SK Hynix are considering expanding capacity.
Bubble analysis
This news shows strong demand for AI chips, with Samsung locking in capacity via long-term agreements and spot prices far exceeding contract prices, indicating supply shortages. This could reflect the AI investment boom, but it might also mean supply tightness is exaggerated, posing bubble risks.
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